News
Central Bank’s Financial Stability Review 2023 reveals strained balance sheets, deterioration in credit quality, and sectoral risks
The strained balance sheets of the household and the corporate sectors in the backdrop of the severe economic crisis which resulted in an erosion of real income levels amid elevated price levels, hindered the debt repayment capacities of households and corporates, the Central Bank said in its Financial Stability Review for the Year 2023.
Households and the corporate sectors, which account for a significant share of financial consumers within the economy, witnessed deterioration in credit quality during the period under review, highlighting concerns for the financial sector, it said.
“While time-bound Non-Performing Loans (NPL) ratios of both the household and institutional sectors increased during the period under review, the former was at a higher level indicating higher default risk within the household sector. Moreover, within the household sector, the NPL ratio of loans obtained for Micro Small and Medium Enterprises (MSME) purposes was higher compared to that of loans obtained for household purposes,” Central Bank said.
The Licensed Finance Companies (LFCs) sector has shifted to pawning/gold loan facilities in the first nine months of the year and this has heightened the sector’s risk to fluctuations in global gold prices.
“The loans and advances portfolio of the Licensed Finance Companies (LFCs) sector contracted significantly during the year ending Q3 of 2023, particularly due to the restrictions on vehicle imports which affected leasing and hire purchase activities,” the CBSL said.
Amidst the decline in the core business, the LFCs sector diversified its activities particularly towards pawning/gold loan facilities, the Central bank said. The asset quality of the sector also deteriorated as indicated by the worsening loans to total loans ratio, the Central Bank said.
“Meanwhile, overall liquidity of the sector remained at an acceptable level while few companies faced difficulties in meeting liquidity requirements. Exposure of the LFCs sector to the sovereign also increased amidst rising investments in Government securities,” the Central Bank said.
Successful implementation of the Masterplan for Consolidation of Non-Bank Financial Institutions (NBFIs) introduced by the Central Bank in the latter part of 2020 helped to build the confidence of the sector, Central Bank said. However, the continued need for consolidation exists in the LFCs sector to ensure resilience.
“Going forward financial institutions, particularly banks, LFCs and insurance companies would have to closely monitor their exposure to the sovereign and implement prudent measures to minimize such risks to ensure stability of the sector,” the Central Bank said.
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Sun directly overhead Pandatharippu, Thellippalai, Varuthaleivilan, Vasavilan, and Manatkaadu about 12:10 noon today (15)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (15th) are Pandatharippu, Thellippalai, Varuthaleivilan, Vasavilan, and Manatkaadu about 12:10 noon.
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Heat Index at ‘Caution Level’ in the Northern, North-central, North-western, Western, Eastern and Southern provinces and in Monaragala district
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 14 April 2026, valid for 15 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Eastern and Southern
provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on
the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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“I extend my heartfelt wishes to all Sri Lankans for a peaceful and joyous Sinhala and Tamil New Year!” – President
President Anura Kumara Dissanayake, issuing a New Year message, extend his heartfelt wishes to all Sri Lankans for a peaceful and joyous Sinhala and Tamil New Year!
The Sinhala and Tamil New Year, which symbolises the aspiration for renewal both physically and spiritually, is the foremost cultural festival of the people of this country.
During the Sinhala and Tamil New Year, traditional customs are upheld, with priority accorded to rituals and religious observances, and activities undertaken collectively at a common auspicious time. This shared cultural practice vividly reflects our nation’s identity before the world, as well as the strong socio-cultural bonds that exist among our communities.
We firmly believe that the future path of national development can only be shaped in harmony with this invaluable culture and our distinguished historical heritage. Accordingly, it must be recalled that all our future development plans have been formulated upon the firm foundation of these precious traditions and cultural values.
Moreover, the common aspiration embodied in the customs and rituals associated with the solar transition is the nurturing of a compassionate individual who values togetherness, respects others, and lives in harmony with nature. I believe that the virtues and values of unity reflected in these New Year traditions should not be confined to these few days alone, but should instead be demonstrated throughout the year in our daily conduct.
In the face of the most significant recent natural disaster challenge encountered in the past year, we demonstrated to the world our resilience and capacity to withstand internal shocks. At the same time, in responding to the external challenges arising from the conflict in the Middle East, the Government has already set in motion a well-planned and effectively managed programme to overcome these difficulties.
As a nation, in overcoming these challenges together, I call upon all of you to further dedicate yourselves to enriching your lives through the values of togetherness, sharing, and solidarity exemplified during the Sinhala and Tamil New Year season.
As we strengthen the achievements we have secured and move forward with unwavering resolve in the face of emerging challenges, I invite everyone to join hands in unity to realise the vision of “A Thriving Nation – A Beautiful Life” for all.
I extend my heartfelt wishes to all Sri Lankans for a peaceful and joyous Sinhala and Tamil New Year!
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